367 million people in ASEAN live on USD6 or less a day, constituting what is known as the base of the pyramid (BoP).
Inclusive businesses seek to provide goods, services, and livelihoods on a commercially viable basis, either at scale or scalable, to people living at the BoP. By making the BoP a part of the value chain of companies’ core business as suppliers, distributors, retailers, or customers, Inclusive Business provide them with secure and sustainable livelihoods.
Inclusive businesses (IBs) come in many different sizes. Here you can understand the distinguishing factors that define Inclusive businesses across the spectrum.
These IBs operate directly as scaled-up businesses.
These include companies that pilot IB activities (e.g. through core business-related CSR Programmes,)Read More
Companies that start as SE initiatives that can be scaled up to become IB models.
Are you an Inclusive Business? Assess your investment readiness here.
Inclusive business models (IBM) incorporate the base of the pyramid in their core value chain. Financial returns are at market rate and their primary funding type is commercial. Typical investment size in IBM can range from $5 - $ 200 million. The companies are either large or medium-sized and can be family-owned or multinational in nature.
Inclusive business activities engage the BoP in ancillary activities expecting both market rate and below market rate returns. Finding type is typically commercial and investment sizes range from USD 300,000 - USD 3 million. Both large and medium sized companies engage in IB activities and the such an activity can be considered a form of strategic corporate social responsibility.
A Social Enterprise Initiative in Inclusive Business engages the BoP in either an ancillary activity or within the core value chain. This type of engagement is not typically profit-maximising and draws on mixed funding types including both grant and commercial funding. SE Initiatives are usually small in size and run by impact funds and high net worth individuals.
In Asia alone, Inclusive Business is projected to create 1.8 million income opportunities and bring services to over 70 million. To do so, there is a need to foster both knowledge-sharing and ecosystem development.
AVPN has partnered with Inclusive Business Action Network (iBAN) to catalyse the growth of Inclusive Business in Asia, and provide access to their global resources.
Click on the 4 countries for more information on each social economy, market readiness and growth potential.
No business will be able to grow and scale without the help of partnerships. We have profiled a partnership to exemplify how IBs have connected with AVPN members to leverage resources and maximize impact.Read Full Story
Be inspired by our IBs founders who have impacted the world’s most socio-economically disadvantaged group, giving them the dignity, opportunities and self-empowerment they deserve.
Find Inclusive Businesses deals through our Deal Share Platform. Identify opportunities and gaps and deploy financial and non-financial capital in a more targeted and impactful manner.
Increases returns to primary timber producers by buying standing trees from smallholder plantations, manage harvesting, primary processing and marketing, manage social, environmental & financial impacts.Read More
We started our project with an idea to tackle poverty specifically in the coastal communities using an app to help traditional fishermen get higher catch rate that will lead to improvement of life.Read More
Akha Ama Coffee aims to establish Akha Ama Coffee Tokyo to expand market for coffee producers in Thailand. This project will be benefited to many agriculturists and encourage to apply more sustainable agricultural practices.Read More
Supporting smallholder farmers and small and medium enterprises in rural Philippines by providing client-centered and customized financing and linking them into sustainable and fair value chainsRead More
Many AVPN members are already active in the Inclusive Business landscape. Find out more about them here.
Ayala Foundation is the Corporate Social Responsibility arm of Ayala Corporation.
Ayala Corporation is one of the largest conglomerates in the Philippines with a diversified business portfolio. Ayala’s subsidiary Manila Water, a publicly-listed company, is the exclusive provider of water and used water services to over 6.0 million people in the Manila Water Concession. Its inclusive business model, Tubig Para Sa Barangay (TPSB) partners with local government units, NGOs and communities to design and implement water supply systems for underserved low-income households to access safe and affordable drinking water. The program has benefitted nearly 1.8 million people from marginalized communities since its launch in 1997.
Cargill aims to achieve 100% transparent, traceable and sustainable palm supply chain by 2020 through conservation of biodiversity, reduction of greenhouse gases, improvement of livelihoods and food security. The company helps farmers grow more and also connects them to broader markets. In Malaysia, Cargill helps smallholders achieve RSPO (Roundtable on Sustainable Palm Oil) certification. Over 260 farmers participate in the program, representing one third of all RSPO-certified independent smallholders in the country. In Indonesia, the company is engaging with more than 21,000 affiliated Indonesian smallholders to help them achieve and maintain RSPO and International Sustainability and Carbon Certification (ISCC) certification standards.
Coca-Cola, the world’s largest beverage company, is committed to creating economic opportunities for everyone associated with its supply chain, including women and smallholder farmers. In 2013, the company launched EKOCENTER project – a global sustainability initiative that aims to provide socio-economic benefits while also encouraging entrepreneurship and sustainable growth. Under the project, solar-powered EKOCENTER kiosks have been established in Sub-Saharan Africa and Southeast Asia. These kiosks operate as a cross between a community centre and a general store, and help meet the needs in some of the most remote regions. Primarily owned by women from local communities, the kiosks rely on partnerships to operate sustainably. Since 2015, over 3000 women have directly benefited from these programs.
Covestro, a supplier of high-tech polymers, has its target to reach and economically benefit 10 million people in the underserved markets globally by 2025 through multiple business solutions including post-harvesting, affordable housing, and sanitation. The company’s inclusive business arm, Covestro Inclusive Business in ASEAN, works towards distributing and selling valuable products to people in need in low income markets. To achieve this, Covestro IB collaborates with partners to facilitate social transformation. In the agricultural sector, the company has reached out to over 100,000 farmers and families, and has installed more than 550 Solar Dryer Domes across Thailand, Indonesia, Myanmar, Vietnam and the Philippines.
We believe in the power of knowledge sharing to encourage investors, social purpose organisations, governing entities, and intermediaries to learn and build their capacity.